THE NETHERLANDS - Dutch pension insurance company, Optas Pensioenen has become the first pension fund to commit assets to a new European real estate fund launched by New York-based The Tuckerman Group.
The amount remains undisclosed.
The Balzac Real Estate Europe Index Fund is aimed at institutional investors and tracks the EPRA Liquid 40 property index, a customised index developed in conjunction with the European Property Real Estate Association and Euronext.
Europe ex-UK coverage is also available as a separate option.
The fund’s strategy is implemented by State Street Global Advisors - which jointly-owns Tuckerman along with Europe’s largest pension fund ABP - and leverages the group’s indexing expertise.
“We believe we have brought a unique product to the market,” said Charles Lauckhardt, chief executive officer of the Tuckerman Group.
“Researchers have long advocated the benefits of real estate for a well-balanced portfolio, as it can act as a risk buffer to improve the overall risk/return profile of a portfolio’s characteristics.
“This new index fund will provide institutional investors with exposure to European real estate property companies through a single investment.”
Paul van den Heuvel, director of investments for Optas Pensioenen said: “Our two key concerns regarding investment in the publicly quoted European real estate market were the lack of liquidity, and the very high relative weight of the UK.
“The vehicles provide an extremely efficient way to deal with the specific risks of this asset class.”
The minimum subscription level is E500, 000.
Tuckerman already manages some US$801m in real estate assets worldwide.
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